Kothari Fermentation receives Income Tax demand notice of Rs 6.66 crore

Kothari Fermentation & Biochem has received a demand order from the Income Tax Department for the Assessment year 2008-09 of Rs 6.66 crore including interest of Rs 2.90 crore. The assessment was conducted by the Department during the year u/s 148 of the Income Tax Act, 1961 and the same relates to the reliefs granted by BIFR in its sanctioned scheme dated March 26, 2008.

The company would be appealing against the said order of Income Tax Department before the Commissioner of Income tax Appeals, New Delhi within prescribed time limit.

The company’s management including its tax advisors, believes that its position will likely be upheld in the appellate process whereby it is expected that the matter will be decided in favour of the company and the said demand will be dropped by the Appellate Authorities.